Main Article Content

Luís Otero González
Universidad de Santiago de Compostela
Luís Otero González
Universidad de Santiago de Compostela
Luis-Ignacio Rodriguez Gil
University of Santiago de Compostela
Pablo Durán Santomil
Universidad de Santiago de Compostela
Pablo Durán Santomil
Universidad de Santiago de Compostela
Araceli Tamayo Herrera
Universidad de Santiago de Compostela
Araceli Tamayo Herrera
Universidad de Santiago de Compostela
Vol. 10 No. 1 (2020): Strategic and Organizational Change, Strategic and Organizational Change, pages 44-55


This paper analyses the effect of family ownership and the characteristics of the board of directors on the implementation level of enterprise risk management (ERM) in Spanish non-financial companies. The sample consists of 162 Spanish non-financial companies listed on Spanish stock exchanges and markets during 2012–2015. The results obtained show that the relationship between the level of family ownership concentration and the implementation level of an ERM system has a non-linear structure. Therefore, a reduction in implementation for moderate ownership levels is observed, although this increases with high ownership values. Regarding corporate governance, our study confirms the importance of certain characteristics of the board of directors, such as the size and the figure of the shareholder director in the implementation of formal ERM systems.

Article Details


Altuntas, M.; Berry-Stölzle, T. R. y Hoyt, R. E. (2011). Implementation of enterprise risk management: Evidence from the German property-liability insurance industry. The Geneva Papers on Risk and Insurance - Issues and Practice, Vol. 36, No. 3, pp. 414-439.
Ang, J., Peterson, P., & Peterson, D. (1985). Investigations into the determinants of risk: A new look. Quarterly Journal of Business and Economics, 24 (I). 3-20.
Baxter, R., Bedard, J., Hoitash, R., & Yezegel, A. (2013). Enterprise risk management program quality: Determinants, value relevance, and the financial crisis. Contemporary Accounting Research. Vol. 30, Nº. 4.
Beasley, M. S. (1996). An empirical analysis of the relation between the board of director composition and financial statement fraud. The Accounting Review 71: 443 465
Beasley, M.S.; Clune, R. y Hermanson, D.R. (2005). Enterprise risk management: an empirical analysis of factors associated with the extent of implementation. Journal of Accounting and Public Policy, Vol. 24, No. 6, pp. 521-531.
Beaver, H., Kettler, P., & Scholes, M. (1970). The association between market determined and accounting determined risk measures. The Accounting Review, 45 (3). 654-682.
Blume, M. E., & Friend, I. (1973). A new look at the capital asset pricing model. The journal of finance, 28(1), 19-34.
Bonfim, D., & Kim, M. (2012). Liquidity risk in banking: is there herding. European Banking Center Discussion Paper, 24, 1-31.
Borde, S. F. (1998). Risk diversity across restaurants. Cornell Hotel and Restaurant Administration Quarterly, 39 (6). 64-69.
Borghans, L., Heckman, J. J., Golsteyn, B. H., & Meijers, H. (2009). Gender differences in risk aversion and ambiguity aversion. Journal of the European Economic Association, 7(2-3), 649-658.
Bowman, E. (1980). A Risk-Return Paradox for Strategic Management. Sloan Management Rev., 21 17-31.
Brustbauer, J. (2016). Enterprise risk management in SMEs: Towards a structural model. International Small Business Journal, 70-85.
Brustbauer, J., & Peters, M. (2013). Risk perception of family and non-family firm managers. Int. J. Entrepreneurship and Small Business, 96-116.
Caballo, Á. (2013). Medición de riesgo de crédito: desarrollo de una nueva herramienta (Vol. 5). Univ Pontifica Comillas.
Daud, W., Haron , H., & Ibrahim , D. (2011). The Role of Quality Board of Directors in Enterprise Risk Management (ERM) Practices: Evidence from Binary Logistic Regression. International Journal of Business & Management, 6, 205-211.
Chen, Y.-S., & Chang, C.-H. (2013). Greenwash and Green Trust: The Mediation Effects of Green Consumer Confusion and Green Perceived Risk. Journal of Business Ethics, 489-500.
Colquitt, L.L.; Hoyt, R.E. y Lee, R.B. (1999). Integrated risk management and the role of the risk manager. Risk Management and Insurance Review, Vol. 2, No. 3, pp. 43-61.
Desender, K. (2007). On the determinants of enterprise risk management implementation. [consultado el 4 de mayo de 2019].
Eckel, C. C., & Grossman, P. J. (2008). Men, women and risk aversion: Experimental evidence. Handbook of experimental economics results, 1, 1061-1073.
Eckel, C., and P. Grossman, (2002). Sex differences and statistical stereotyping in attitudes toward financial risk. Evolution and Human Behavior 23: 281–295
Fama, E. F., & MacBeth, J. D. (1973). Risk, return, and equilibrium: Empirical tests. Journal of political economy, 81(3), 607-636.
Fehr-Duda, H., de Gennaro, M., & Schubert, R. (2006). Gender, Financial Risk, and Probability Weights. Theory and Decision, 60, 283-313.
Fiegenbaum A & Thomas H. (1988). Attitudes toward risk and the risk–return paradox: prospect theory explanations. Academy of Management Journal, 31:1, pp. 85–106.
Gu, Z., & Kim, H. (1998). Casino firm's risk features and their beta determinants. Progress in Tourism and Hospitality Research, 4, 357-365.
Hardwick, P. (1997). Measuring cost inefficiency in the UK life insurance industry. Applied Financial Economics, Vol. 7, 33-44.
Hellmann, T. y Stiglitz, J. (2000). Credit and equity rationing in markets with adverse selection. European Economic Review, 44, pp. 281-304.
Hoyt, R.E. y Liebenberg, A.P. (2011). The value of enterprise risk management. Journal of risk and insurance, Vol. 78, No. 4, pp. 795-822.
Jensen, M., (1986). Agency Cost Of Free Cash Flow, Corporate Finance, and Takeovers. American Economic Review, 76(2). 323-329.
Joecks, J., Pull, K., & Vetter, K. (2013). Gender diversity in the boardroom and firm performance: What exactly constitutes a “critical mass?”. Journal of business ethics, 118(1), 61-72
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society, 263-291.
Kane, G., & Velury, U. (2004). The role of institutional ownership in the market for auditing services: an empirical investigation. Journal of Business Research, Vol. 57, 976-983.
Kleffner, A.E.; Lee, R.B. y McGannon, B. (2003). The Effect of Corporate Governance on the Use of Enterprise Risk Management: Evidence from Canada. Risk Management and Insurance Review, Vol. 6, No. 1, pp. 53-73.
Liebenberg, A.P. y Hoyt, R.E. (2003). The determinants of enterprise risk management: evidence from the appointment of chief risk officers. Risk Management and Insurance Review, Vol. 6, No. 1, pp. 37-52.
Logue, D. E., & Merville, L. J. (1972). Financial policy and market expectations. Financial Management, 37-44.
Mafrolla, E., Matozza, F., & D’Amico, E. (2016). Enterprise Risk Management In Private Firms: Does Ownership Structure Matter? The Journal of Applied Business Research, 671-686.
Melle, M. (2001). Características diferenciales de la financiación entre las pyme y las grandes empresas españolas. Asimetrías informativas, restricciones financieras y plazos de endeudamiento. Papeles de Economía Española, nº 89/90, pp. 140-166.
Mishra, S. (2011). Developmental environment affects risk-acceptance in the hissing cockroach. Gromphadorhina portentosa. Journal of Comparative, Vol. 125, 40-47.
Moyer, R. C., & Chatfield, R. (1983). Market power and systematic risk. Journal of Economics and Business, 35 (I). 123-130.
Ohlson, J.A. (1980). Financial ratios and the probabilistic prediction of bankruptcy, Journal of Accounting Research, spring, 109-131.
Paape, L. y Speklé, R.L. (2012). The Adoption and Design of Enterprise Risk Management Practices: An Empirical Study. European Accounting Review, Vol. 21, No. 3, pp. 533-564.
Pagach, D. y Warr, R. (2011). The characteristics of firms that hire chief risk officers. Journal of Risk and Insurance, Vol. 78, No. 1, pp. 185-211.
Pettit, R., & Westerfield, R. (1972). A model of capital asset risk. Journal of Financial and Quantitative Analysis, 7 (4). 1649-1668.
Rosenberg, B. & McKibbin, W. (1973). The prediction of systematic and specific risk in common stocks. Journal of Business and Quantitative Analysis, 8 (3). 317-334.
Sullivan T. (1978). The cost of capital and market power of firrms. Review of Economics and Statistics 60: 209–217.